5 Reasons Why YOU NEED to LEARN PINE SCRIPT!

hi traders in today's video i'm going to
address a few reasons why i think you
would be
nuts not to learn pine script if you're
on the fence about diving into this new
world
or you've never heard of panscript
before then today's presentation will
shed some light on the value
of acquiring this new skill and
enhancing your edge
and setting yourself apart from those
traders who do not have this rare
and specialized weapon in their trading
arsenal
here are five reasons why i think
learning panscript is a good idea
number one it helps you to systematize
parts of your trading process learning
how to script
parts of your trading process helps you
to be able to define your trading
process
with clear concise and objective rules
when you tell a script to do something
you need to be extremely clear
in what you're telling it to do many
traders cannot objectively define what
it is they're looking for in the markets
this often leads to inconsistent
outcomes in their trading
as a result of inconsistent actions
by systematizing parts of your trading
process we can remove some subjectivity
and uncertainty that we might experience
when analyzing
a chaotic and oftentimes random market
reason number two learning to script
allows you to automate parts of your
trading process entirely
this includes automation of parts of
your analysis
it includes detecting setups that you'd
like to trade
and generating alerts so that you can
stay on top of the markets
and once you get good enough at
scripting it can even allow you to
automate your trade execution on some of
your simpler strategies
learning to code can also save you a lot
of time
in the back testing process and during
your live analysis throughout the day
for example when i'm day trading i
usually don't need to sit and stare at
the charts all day
i can set up alerts and scripts that can
detect the market conditions i'm looking
to trade
and the setups that meet my rules for my
strategies
and i can be sure that i will always be
notified
when a setup is detected this allows me
to also avoid
any missed opportunities i can't
remember the last time
i missed a trade because i didn't see it
coding your own trading scripts is like
having a second pair of eyes on the
markets
that never miss a beat
reason number three learning how to code
can significantly
enhance your edge over the markets
if you don't already have an edge over
the markets that is profitable
scripting can help you to build one most
traders who can't find a profitable
approach to trading
usually don't have a consistent strategy
or an objective
method of approaching the markets as i
mentioned in reason number one
learning to script and automate and
systematize parts of your trading
process
allows you to define your trading
process with clear
rules you can then back test those rules
or forward test those rules
and collect the relevant statistics to
determine whether or not what you are
doing
is profitable over time and if you've
already gone through that process and
you have a profitable strategy or
approach
to trading be that rules based like i'm
talking about here
or completely discretionary where you
trade mostly on experience
feel and pattern recognition you can
still
use scripting to help enhance your
trading process
in my personal trading my scripts do a
lot of the heavy lifting when it comes
to
setup detection and just generally
staying on top of the markets at all
times
and never missing anything important
learning to code
in general when it comes to trading is a
win-win
whether you're not profitable yet or you
are profitable there is always something
to be gained
out of learning how to code your own
trading scripts and as you'll see later
in this presentation
i'll make a great case for why learning
panscript in particular
is a better option than any of the other
languages that you could choose from
as a beginner programmer i myself have
been programming for over 15 years in
all kinds of languages from java to
python
to c plus plus php html all of them
and i have still fallen back on
panscript being my main
trading language purely for its
simplicity
and the power that it allows me to have
with such
a small cost in time and development but
we'll come back to that later
reason number four for why you should
learn pinescript
is so that you can remain competitive
and on the cutting edge
of trading automation in general
in our world is only going to increase
over time
completely automated self-driving cars
are only years away
driving a car might seem simple on the
surface but when you think about how
much
interpretation and subjectivity is
involved in analyzing
what decision to make when you're on the
road it's remarkable
how far technology has come and the fact
that we can now automate something
that typically requires so much human
discretion
automation in trading is also only going
to increase
over time which is not good for those of
you who do not learn how to code
trading is an extremely competitive
industry
one way to stay ahead of your
competition and beat them is by
leveraging
your rare and specialized skills and
coding
is one of the most powerful of all when
it comes to trading
all the best traders in the world use
some form of automation and scripting
in their trading process i'm talking the
big dogs the multi-millionaire traders
the hedge funds the prop firms all of
them
without exception use some form of
automation
and scripting and coding to fully
exploit
every advantage their edge gives them in
the markets and those who don't use
automation
in their process are trading at a
significant
and unnecessary disadvantage and the
final reason
why i think learning panscript is a
great idea for all traders
retail and professional is because it is
by far
the easiest coding language for traders
to learn
especially if it's your first language
now i'm not saying that panscript is the
best
language to learn when it comes to trade
automation
and analysis the best language would
probably be something like python
however python is exceptionally
difficult for a beginner trader to learn
and time consuming i've been learning
how to automate some parts of my process
through python over the past year or two
and when i compare it to panscript it's
unbelievably
convoluted now the payoff for that is
that you can leverage some extremely
powerful tools in python
however it can take you years to learn
how to properly
utilize a language like python then of
course there's the metatrader language
mql but this language let me tell you
is definitely not beginner friendly i
personally have been finding it easier
to learn python than mql
now again mql is more powerful than
panscript and allows you to do some
complex things that pi script cannot do
but the cost of time to learn this
language is not insignificant
and then finally there are other
languages out there like java which was
the very first language i ever
specialized in and i got quite
proficient with that language but it
took me years and years
to master that language and even though
i'm still really proficient with that
language i still prefer to use
pinescript when it comes to automating
parts of my trading process
purely due to the incredible simplicity
of the panscript language
the fact that it's cloud-based and runs
on tradingview servers i don't need to
have
virtual private servers running or
computers in my house
i don't need to worry about development
environments and
apis and libraries and all of that
complex stuff that just adds layers and
layers of complexity
to your coding projects when it comes to
pine script everything's in your browser
everything is run on the trading view
platform and you can turn off your
computer
and still have your scripts running 24 7
on their servers
so that you never miss a beat in the
markets you can have your second pair of
eyes watching
price action 24 7 on crypto stocks
forex commodities futures it doesn't
matter
pinescript can handle it now as i
mentioned in point number four on
remaining competitive
and on the cutting edge all of the best
traders in the world
make computers an ally here you can see
mike bella fiore
from smb capital one of the most
successful and well-known
proprietary trading firms in new york he
has personally mentored dozens of
traders and taken them from struggling
to top dog seven-figure and beyond
traders who turn millions to tens of
millions of profits
in the markets each and every year and
as mike said during an interview a few
years ago
he strongly advises any aspiring trader
to learn to code
he says custom filters built with code
help you
make more as a trader automated models
built in code can supplement your
discretionary trading
our junior traders all build their own
filters and models through python
and if it's important to a prop trader
then it should be important to you
whether you're a retail trader a
hobbyist trader or a professional trader
these guys are your competition you
don't need to be on their level of skill
in order to be a profitable trader but
you better try and utilize the same
tools as them
if you want to remain competitive but as
i said earlier
python may not be the best choice for
you to learn as your first language
if you're a beginner programmer and it
may not even be
the best choice if you're an experienced
programmer but you're new to trading i
don't see any reason why learning pine
script
first is not a good idea no matter what
your level of skill in programming
or in trading plus it's completely free
so you have nothing to lose
whatever you learn in panscript can only
help you to become a better coder
in any other language you choose to
pursue even if that is python
down the line but first let's look at an
example of what we would have to do in
python
to achieve something that is actually
extremely simple in pinescript
here i have an example of the steps
involved in getting an
rsi overboard or oversold signal in
python
so imagine we want to get an overbought
or oversold signal in python and then
generate
an alert the first step is we need
to connect our script to a broker's data
feed
api straight away the advantage of using
pinescript is that all of that is
inbuilt into the platform
you don't need to connect to your
broker's data feed to get price sources
it's all right there at your fingertips
in the training view browser
and you can access the open high low and
close data
with a single line of code to do the
same thing in python would require
hundreds of lines of code if not
thousands
step number two we need to observe the
last 14 closing prices of a market
step number three we need to determine
whether the current day's closing price
is higher or lower
than the previous day this is the
algorithm for the rsi indicator
step number four we need to calculate
the average gain and loss
over the last 14 days step number five
we need to compute
the relative strength which is the
average gain
over those 14 days divided by the
average loss the next step
is we need to compute or calculate the
relative strength
index which is done by subtracting 100
from 100 divided by 1 plus the relative
strength value and then 7 the final step
we need to detect when the rsi value
exceeds 30
or 70. in python you would need to do
all of this manually
in pinescript this is all done for you
in a single line of code using an
inbuilt function
which we'll get to in a moment but next
let's look at what we would need to do
in order to generate an alert to your
phone
whenever these conditions are met this
is just getting the signal
now we need to send that signal to our
phone so to keep things
simple quote-unquote i'm going to focus
on sending an email notification to our
phone
rather than a push notification which
adds a whole new layer of complexity
to this process the first thing we need
to do is set up
a smtp server or an email server
then we need to connect our script our
python script to that mail server
and authenticate ourselves then we need
to create a mime
multi-part message object and load it
with appropriate headers for the from
two and subject fields then we need to
add our message
text body to that object and then we
need to send the message
using the smtp server object
if you understood everything i just said
then you're going to find pinescript
incredibly easy to learn but if none of
that made sense to you
then you're definitely in the right
place before we continue let me just
quickly show you what some of my simple
python scripts look like before we go
and look at some code here's a script
that does something extremely simple and
might not look like it
but all this script does is test a bunch
of
different moving average crossover
strategies now i don't trade ma
crossovers in my own trading
this was purely a learning experience
for me just to attempt a
simple strategy test in python and even
though this is a simple test
look at how much code is involved
in just getting some price data this is
just
retrieving price data from the oanda api
my broker's
api and then i have a bunch of files
here
that handle my instrument data symbol
data
and as you can see i have several files
here and several dozens of lines of code
which although is very powerful and i
can achieve some awesome things
with python that pinescript cannot do
such as
complex analysis of patterns in the data
if i just want to detect a very simple
rsi
overbought or oversold signal my script
would look just as long
and complex as this if not worse now
let's compare doing the exact same thing
in pine scripts so the first step
is i want to declare the rsi value and
get it from the inbuilt panscript rsi
function this alone eliminates the first
six steps of doing the same thing in
python the second step
is we need to check if that value is
above 70 or below
30 and then the third step we need to
simply send an alert through trading
view
to our phone to our email we can pop
up a message on our charts we can play a
sound
and we can achieve any of these or all
of these
with just a single line of code this is
what our script would look like
in pinescript so if you ignore the first
line of code which is just telling
the pine script editor or compiler which
version
of the language we want to use and four
is the latest version
the next four lines of code achieve
everything we need in order to
send an alert to our phone or to our
computer
as soon as the rsi exceeds 30 or 70.
as far as programming goes you cannot
get
any more simple than this
now don't worry if there's anything you
see there that doesn't make sense to you
by the end of the basics course or
especially the mastery
course all of this will make perfect
sense to you
but in today's presentation i just want
to demonstrate the simplicity and the
elegance
of pinescript compared to other more
advanced programming languages
this is the benefit or advantage of
having a domain
specific language in this case panscript
is custom built
to do one thing and one thing only and
that is analyze
price data there is a multitude of
inbuilt
functions and tools that panscript give
us that allow us to dramatically speed
up the analysis process
quite frankly i think you'd have to be
crazy not to learn this language
if you've got the time and the interest
it can help you enhance your edge it's
easy to code
it could not be any easier to code and
it's cloud-based
meaning everything is handled remotely
there's no complex server setup required
you don't need to run your scripts on
your home computer like you might with
metatrader
or any other automated platform all of
your code and scripts are saved on the
trading view servers so if you
uh say you write a scripted home and
then you go to work
at your office and you want to play
around with it there
you don't have to use usbs or upload
files or anything like that
you simply open up your training view
charts click on the pine editor
and all of your code and scripts and
projects are saved on the tradingview
platform
ready to be accessed in your browser
just for reference sake
here is every script i've ever written
in pinescript
to help me do all manner of things
when it comes to analyzing price action
in various markets
including fully automating certain
strategies like i've done with my
pullback strategy
and other simple strategies that i've
developed and if i want to edit
my script or apply it to my chart from
anywhere in the world from any computer
any device
all i need to do is come up to the
indicators list click on my scripts
find the relevant script i want to work
with click on that
and then just open up the source code by
clicking on this button here
and here is the source code to my script
i can edit this on any computer
anywhere anytime i can leave it running
24 7 on the trading view servers
and it will generate alerts detect
trading setups
in this particular scripts case it can
even fully automate
my trade execution through a third party
api
that's a more advanced application of
pine script but as you can see here this
script is detecting a certain setup that
occurs during a certain time of day on a
certain market
and over the past several years has had
a greater than
60 win rate all of that detected
in code no subjectivity no discretion
required
it's black and white either i have a
signal or i don't
i know that this has an edge i know that
this is profitable
i know that my code doesn't lie i've
double confirmed all of this through
manual back testing and
trading this on a live account for
several months and thanks to panscript
all i need to do is either click a few
buttons and set up my automated alerts
or if i want to manually trade this i
just wait until i get my notification
that a trade is set up
i come into my office i draw out my
trade opportunity or my setup my stop
loss and take profit
i right click click create limit order
put in my risk
click the sell button and my work is
done for the day
it's my personal belief that any trader
who does not know how to write their own
scripts whether that be in pinescript or
python or any other language
is trading with one hand tied behind
their back
it's completely unnecessary learning to
code is easier than you might think
especially if you've never written a
line of code before it's certainly no
more complex than dealing with a
spreadsheet in excel
and any trader of any level of
experience should at least know how to
handle a simple spreadsheet
if you can handle a simple spreadsheet
then you can learn how to write
pinescript i can guarantee that if
you're interested in learning more
go to panscriptmastery.com and sign up
to my free
basics course stop trading with one hand
tied behind your back
and take your trading to the next level
it would be my honor
and pleasure to be the one to help guide
you through the learning process when it
comes to pine scripts i have over four
years of experience with this language
i have over two years of experience in
consistently profitable trading
and with those two facts combined i
think i'm uniquely positioned to be the
perfect person
to teach you how to write your own
scripts in panscript
i've already had thousands of traders go
through my basics course which is
completely free
and i've had hundreds of traders go
through my mastery course and really
take their coding and trading to the
next level
if you're interested in that you can
come to this page here and read through
the reviews
every trader who has finished the course
has gone on to do great things with
their trading
and their coding i rarely receive any
negative feedback for the course and
when i do
normally i just record a lesson on
whatever it is that that student is
struggling with
especially if it's a concept that i
overlooked or missed in the course
content
but the response has been overwhelmingly
positive everyone who's gone through it
from beginners total beginners at
trading and coding
to professional traders including one
trader who i won't mention his name
who runs a world famous stock trading
course
where they teach traders how to navigate
the stock market using rules based
strategies and approaches he went
through the course so that he could
create his own proprietary indicators to
give out to his students
but all i can say is that i haven't had
a single student who completed the
course
regret taking the course and some of
them have gone on to achieve
amazing progress both in their trading
and in their scripting
and i'm constantly impressed with what
some of my students are able to achieve
trading can be a lonely game especially
when you're a solo retail trader like i
am
i spend the majority of my day doing
nothing sitting on my hands waiting for
the next trading opportunity
that meets my rules to appear that's why
i started this course
i get a kick out of teaching people i'm
told i'm good at it
but i'll let you be the judge of that
and so in my spare time
this is what i do i teach people how to
write their own scripts and do the same
thing i do when it comes to automating
and
systematizing parts of my trading
process through the elegance
and the convenience of code anyway
that's all i have to say for today's
presentation
i hope i've convinced you to at least
take coding
seriously and to go and pursue it i
don't care if you take my course i don't
care if you buy anything from me i don't
care if you sign up to my free course
i would appreciate it if you're watching
this on youtube if you hit the subscribe
button
because that does help boost my channel
and it's good inspiration for me to
continue
learning and exploring new concepts to
come and teach you guys
but really all of this is just a work of
passion for me
it's something i do for fun and i really
hope to inspire other traders
to see what i see in coding when it
comes to
utilizing it in your trading as a tool
that's all i have for you today make
sure to check out my blog at
theartoftrading.com
if you're interested in general trading
advice and wisdom and insights
from someone who's been there who
struggled from the beginning
horribly i was a horrible trader when i
first began and i still have a lot left
to learn
but at least i've made it over the hump
of blowing accounts
and i'm finally moving up and to the
right if you want to learn some of the
things that i learned along the way
check out my blog for that you can also
check out my new podcast where i
basically
read my articles that i've written
over at thetradingpodcast.com obviously
i'm on youtube
i have a twitter account which i created
a bot in java which tweets out my
favorite trading quotes
every day twice a day it sends out a
trading quote for inspiration and
motivation to any of you traders out
there
who need that you can find that account
at
trade wisdom over on twitter i'm on
facebook i'm on instagram
and now i'm out thanks for watching
thank you for your time
stay passionate and i'll see you in the
next video good luck with your trading
good luck with your coding take care and
goodbye
[Music]
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